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WEEK OF MONDAY, AUGUST 3, 2015

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A Publication of The Warren Group COMMERCIAL INTERESTS

CONSTRUCTION ZONE

BOSTON 2016

Delayed Casino Could Harm Springfield’s Recovery

Year

A GOLD MEDAL

BEST OF THE CENTURY

Building Boom Is Biggest In A Century

BY STEVE ADAMS | BANKER & TRADESMAN STAFF

T

he city of Boston’s building boom is reflected in many elements: groundbreakings that seem more frequent than Red Sox wins; cranes redrawing the skyline day by day; and the steady deluge of new project filings that reflect developers’ unshakable confidence.

There’s currently $6.9 billion worth of development underway in Boston, spanning 66 projects that total 14.6 million square feet, according to Boston Redevelopment Authority data.

That sets the stage for 2016 as the busiest year for construction completions in over a century, surpassing the 1980s heyday that saw the arrival of landmark skyscrapers such as International Place, 75 State St. and Exchange Place.

Developers are on a pace to complete 7.9 million square feet of rentable building area next year, according to data compiled by real estate brokerage Tran-

swestern RBJ and CoStar.

Meanwhile, more projects bearing the city’s stamp of approval wait in the wings for anchor tenants and financing, including the $2.2 billion redevelopment of the Government Center garage into a sixbuilding, multi-tower complex.

A confluence of factors is contributing to the busy pipeline. Greater Boston’s strength in tech and life sciences meshes with key growth sectors in commercial real estate. The growing cachet of urban workspaces has helped the downtown office market recover from the recession, setting up opportunities for build-tosuit and speculative projects. Multifamily developers are tapping into demand for urban living with new condominium and apartment towers, albeit few within reach of those with middle-class paychecks.

Here are the largest developments – as ranked by project costs – currently stirring up dust across the city: Continued on Page 8

2016*

7.9 million 2015

5.7 million 1987

4.4 million 1984

4.4 million 1976

4.2 million

Threats From Across The State Line Worrying

BY SCOTT VAN VOORHIS BANKER & TRADESMAN COLUMNIST

I

t was all blue skies this spring when Springfield’s leaders and top MGM executives gathered at a festive ground breaking ceremony for the Las Vegas giant’s planned $800 gambling palace. But storm clouds are starting to move in on Springfield’s big bet that casino gambling can revive its struggling and tornado-ravaged downtown.

Worried about losing their gambling jackpot to Massachusetts, Connecticut lawmakers hustled through plans to give Foxwoods and Mohegan a green light to build a new casino on the state line, just a short drive from Springfield.

And now MGM has pushed off the opening of its gambling and entertainment palace by a year, while making mysterious threats to somehow block Connecticut’s border casino plans.

The stakes may be highest for Springfield, Continued on Page 3

2001

3.7 million Highest construction completions by year, city of Boston, 1916-2016 (rentable building area in square feet). *Projected Source: Transwestern RBJ/CoStar

Four Seasons Hotel & Private Residences

Millennium Tower

1 Dalton St., Back Bay 211-room hotel, 180 condos $700 million Developer: Carpenter & Co. Construction manager: Suffolk Construction Completion date: Fourth quarter 2017 It doesn’t rival the Millennium Tower’s growing prominence on the skyline – but just wait. The 61-story Four Seasons Hotel & Private Residences will be Boston’s tallest building built in 50 years when it tops out. And prices could set a new standard in Boston for the condo market. High-end amenities include concierge services and a residents-only private restaurant on the 50th floor.

1 Franklin St., Downtown Crossing $680 million 440 luxury condos Developer: Millennium Partners Construction manager: Suffolk Construction Completion date: Summer 2016 The bell cow that firmly established Downtown Crossing as a development destination, the Millennium Tower has sold 80 percent of its 440 units a year before the grand opening. Available units range from $1.6 million to the $37.5-million penthouse, which spans 13,000 square feet and offers 360-degree views from its lofty 625-foot-high perch.

CONTENTS

In Person ������������������������������������������������������������������ 7

Residential ������������������������������������������������������������ 10

Points ����������������������������������������������������������������������� 4

Commercial & Industrial ������������������������������������������ 8

Classified Sections ������������������������������������������������� 14

By The Numbers ������������������������������������������������������� 6

Banking & Lending �������������������������������������������������� 9

Records Section ������������������������������������������������������ B1

BANKING ON TECH

Local Banks, Credit Unions Incubating New Talent

DCU Joins FIs Experimenting With Incubator Concept

BY LAURA ALIX BANKER & TRADESMAN STAFF

F

intech incubators are all the rage in financial services today, and a Massachusetts credit union is one of the latest to join the ranks.

Marlborough-based Digital Federal Credit Union (DCU) is perhaps the latest Massachusetts financial institution to launch its own version of a tech incubator: the DCU Center of Excellence in Financial Services (DCU CoE).

The center is a collaborative effort between DCU and the Boston-based coworking company Workbar, and DCU recently announced its second round of fintech startups invited to the center.

The companies chosen cover a breadth Continued on Page 9

2

BANKER & TRADESMAN

Timothy M. Warren Jr., CEO and Publisher David B. Lovins, President and COO

Banker & Tradesman ESTABLISHED 1872

Published by The Warren Group EDITORIAL Editorial Director: Cassidy Murphy Associate Editors: Anna Sims, Joe Kourieh, Malea Ritz

AUGUST 3, 2015

THE WEEK ON THE WEB A ROUNDUP OF OUR MOST POPULAR WEB-ONLY STORIES FROM THE PAST WEEK

If you weren’t reading BankerandTradesman.com last week, here’s a sampling of what you missed: MASS. HOME SALES GAIN 11.4 PERCENT, BEST JUNE IN 10 YEARS • Bay State single-family home sales shot up 11.4 percent in June, making it the best June for sales since 2005, according to a new report from The Warren Group, publisher of Banker & Tradesman.

NEWSPAPERS Associate Editor: Steve Adams Reporters: Laura Alix, Jim Morrison Contributing Writer: Scott Van Voorhis Interns: Katelyn Conley, Jessica Pitocco M A R K E T I NG & C R E A T I V E S E R V I C E S Director of Marketing and Creative Services: John Bottini Design Production Manager: Scott Ellison Graphic Designers: Tyler Grazio, Tom Agostino, Amanda Martocchio Copywriter: Mallory Weiss PUBLISHING GROUP SALES Director of Business Media: George Chateauneuf Publishing Group Sales Manager: Richard Ofsthun Advertising Coordinator: Jennifer Burke Intern: Brittany Bennett NEWSPAPERS Advertising Account Manager: Matt Hart Classified Advertising Sales Manager: Wayne Gregory CUSTOM PUBLICATIONS Advertising Account Managers: Claire Merritt, Bob Holzhacker, Mike Lydon, Jonathan Grimm EVENTS Events Manager: Emily Torres Events Coordinator: Jasmin Rexford Events Specialist: Sarah Warren DATA PRODUCTS GROUP Information Solutions Sales Director: Malee Nuesse Data Solutions Account Manager: Patrick O’Keefe, Kevin Bartlett Data Solutions Account Manager and Fulfillment Services: William Visconti Data Solutions Senior Sales Support Representative: Alice Diggs Data Solutions Customer Service and Sales Coordinator: Jenell James Sales Support Representative: Jiayi Fang INFORMATION TECHNOLOGY Senior Applications Developer: Joe Chan Software Development Manager/ Senior Business Analyst: Alan Pasnik Software Developer: Tatyana Lisyanaya Network Administrator: Mark Craver

• A total of 6,457 single-family homes were sold in June compared with 5,798 in June 2014.Year to date, sales increased by 1.8 percent with 21,667 homes sold compared with 21,292 during the same period last year.

• “This month, we are seeing the early results from a strong spring market, It is a remarkable showing after a prolonged slump and a sluggish recovery extending over the past 10 years, This is the largest number of homes sold in any month since August 2005,” said Timothy M. Warren Jr., CEO of The Warren Group. “Homes that closed in June are typically deals that were shopped and negotiated 30-60 days earlier. This shows the strength of the spring selling season and follows disappointing sales earlier in 2015.”

• The median sales price of single-family homes in the Bay State was $365,000 in June compared with $359,900 in June 2014 an increase of 1.4 percent.

poll results

• Condominium sales rose in June with a total of 2,794 transactions completed compared with 2,429 in June 2014, a 15 percent increase. June marked the best month for condo sales since August 2007 and the first time in seven consecutive months that condo sales have increased on a year-over-year basis.

Is it worth reducing the asking price on your home to find a buyer more quickly?

BOSTON 2024 ABANDONS OLYMPIC BID

More than half of readers believe it’s sometimes necessary to compromise on the asking price.

• The campaign to bring the 2024 Summer Olympics to Boston – which divided the region for six months while stirring up wide-reaching discussions about urban planning strategies and the future of Boston on the world stage – is officially over.

• U.S. Olympic Committee and Boston2024 officials said last week they would not pursue the $4.6-billion plan including construction of a temporary stadium in South Boston and events held from Lowell to New Bedford.

• “Notwithstanding the promise of the original vision for the bid, and the soundness of the plan developed under (Boston2024 Chairman) Steve Pagliuca, we have not been able to get a majority of the citizens of Boston to support hosting the 2024 Olympic and Paralympic Games,” the groups said in a joint statement. “Therefore, the USOC does not think that the level of support enjoyed by Boston’s bid would allow it to prevail over great bids from Paris, Rome, Hamburg, Budapest or Toronto.”

64%

Yes, it’s a fast-paced market.

27%

No, patience is key in getting the right price from the right buyer.

9%

Only if it’s a slight loss – never more than 10 percent market value.

• The announcement came hours after a last-minute press conference at which Boston Mayor Martin Walsh distanced himself from the cause he had championed, reiterating his opposition to signing a public bid document exposing taxpayers to potential cost overruns.

“This is a commitment I cannot make without assurances that Boston and its residents will be protected,” Walsh said in a statement.

INFORMATION SERVICES

WELLS FARGO SIGNS 150K SF FINANCIAL DISTRICT LEASE

Director of Operations and Product Strategy: Samantha Bullock

• Wells Fargo has leased 150,000 square feet at 125 High St. in the Financial District and will begin relocating 775 employees from three locations in downtown Boston and Back Bay late next year.

Data Quality Supervisor: Tammy Dandurant

• Publisher Houghton Mifflin Harcourt recently signed a 16-year lease for 162,000 square feet on the fifth through eighth floors with plans to relocate its headquarters from 222 East Berkeley St. in Back Bay in early 2017.

Acquisitions Manager: Jami Uretsky Acquisitions Specialist: Ellen Doucherty Acquisitions Coordinator: Linda MacDonald

• The 14-year lease for the 11th through 15th floors enables Wells Fargo to consolidate space from three buildings in the downtown and Back Bay beginning in late 2016, spokeswoman Krista Van Tassel said.

Operations Coordinator: Kathy Ferraro Processing Coordinator: Fern Cruikshank

• The regional commercial bank, home mortgage and commercial real estate units based at 101 Federal St. will be the first to move in late 2016, along with the community lending and investment group located at 1 Boston Place.

Transactions Acquisition Coordinator: Michelle Dress FINANCE & ADMINISTRATION Accounting Manager: Mark DiSerio Accounting Staff: Cheryl Behl Accounts Payable: Olga Khalaydovsky

MASSDEVELOPMENT PROVIDES $9M FOR AFFORDABLE PITTSFIELD APARTMENTS

Human Resource Manager: Linnea Blair

• Pittsfield April Lane LLC will use $9 million in MassDevelopment funds for the acquisition and renovation of an apartment complex in Pittsfield.

BANKE R & TR AD ESMA N

(ISSN 0005-5409)

Volume 195, Number 31 Published each Monday. ©2015 The Warren Group Inc., 280 Summer Street, Boston, MA 02210-1131. All rights reserved.

No part of this publication may be reproduced without the written consent of the publisher.

Banker & Tradesman™ and The Warren Group™ are trademarks of The Warren Group Inc. Subscriptions to Banker & Tradesman:

• The organization plans renovate and preserve all 100 units as affordable to households earning no more than 60 percent of area median income with the $1.1 million taxable and $7.9 million tax-exempt bonds, purchased by Bank of America.

• The 45-year old Dalton Apartments are located at 51 April Lane and consist of 11 buildings containing 28 one-bedroom units, 44 two-bedroom units and 28 three-bedroom units.

• The developers plan to replace roofs, windows, furnaces, hot water tanks, kitchens, appliances, floors and lights, while creating five handicapped-accessible units.

Deluxe: One year – $379 Two year – $665 Classic: One year – $239 Two year – $599 Single copies are $10.00 each and are on sale at the offices of the publisher.

HERE’S WHAT YOUR PEERS WERE INTERESTED IN LAST WEEK:

POSTMASTER: Send address changes to: Banker & Tradesman The Warren Group 280 Summer Street, Boston, MA 02210-1131 Phone: 617-428-5100. Fax: 617-428-5119. www.bankerandtradesman.com Periodicals postage paid at Boston, MA

• • • • •

Boston 2024 Abandons Olympic Bid Mass. Home Sales Gain 11.4 Percent, Best June In 10 Years Walsh Won’t Sign Olympic Bid Document Yet Wells Fargo Signs 150K SF Financial District Lease Japanese Investors Acquire Boston Office Building For $79M

• • • • •

Loan Growth Boosts Net Income At Blue Hills Bank In Q2 Study: Boston Named Healthiest Housing Market Among Big U.S. Cities Top 3 Mortgage Lenders Eastern Bank Launches Apple Pay Investors Acquire Malden Bank Branch Building For $2.5M

STORY IDEAS? Email your submissions to our Web team at editorial@thewarrengroup.com

3

BANKER & TRADESMAN

AUGUST 3, 2015

City Officials Keep Cool In Midst Of Casino Battles Continued from Page 1 which has made the MGM plan the centerpiece of its efforts to revive the fortunes of one of the poorest cities in New England.

The MGM casino “has bene every helpful to a lot of things happening in downtown Springfield,” said Kevin Kennedy, Springfield’s economic development chief.

“The delay [someSCOTT VAN VOORHIS what] affects our comeback as a city – so I don’t want to say it doesn’t – but they were not obligated to open until February 2018,” he said.

The new casino is the core and catalyst of a massive redevelopment plan, with $2.7 billion in new construction either underway or planned in and around downtown Springfield, from work on I-91 to the $88.5 million resurrection of Union Station, Kennedy noted.

The new MGM Springfield will have a 125,000-square-foot gaming floor, a 250room hotel and 165,000 square feet for restaurants and retail. An outdoor skating rink and a 12-screen cinema are also in the works.

The casino itself is designed to spur surrounding development with an “inside out” design aimed at having the casino blend in with the urban fabric of the city.

In a bid to bolster Springfield’s various cultural, entertainment and meeting venues, the new MGM Springfield will hold events at the nearby MassMutual Center, Symphony Hall and City Stage.

Fight On The Border

In contrast to the somewhat panicky reaction of MGM’s top brass, Springfield’s

economic development chief appears to be one of the coolest heads around right now.

Despite the chest-beating down in Connecticut, nothing is a done deal there yet, with no site picked for the proposed satellite casino, Kennedy observed. He also noted that Springfield has held MGM to its schedule of payments, so the delay won’t cost the city a dime.

And MGM has already sunk $200 million into the project, so it’s not likely to be walking away anytime soon.

“Are we concerned in Springfield about competition? Sure, we would be foolish not to be concerned,” Kennedy said. “But in the final analysis, the only thing we can do about that is to have the best project we can possibly have.”

And sure, as Kennedy noted, MGM’s decision to put off the opening of its massive new Springfield casino may very well be tied to slow-as-molasses state roadwork on nearby I-91, basically the main way in and out MGM’s planned gambling palace.

Yet … let’s also get real here. The timing of MGM’s announcement that it will be delaying the opening of its Springfield casino is unfortunate. You can be forgiven for being a little skeptical, given Connecticut’s decision to launch a counter strike aimed directly at MGM’s mega plans for Springfield.

While Foxwoods and Mohegan have yet to select a site, the idea is to set up a smaller version of their massive gambling palaces near the Massachusetts border.

Such a satellite casino would lure away any Connecticut gamblers who might be tempted to cross the border, and maybe even pick up some additional business from the Massachusetts side.

At the very least, it throws a monkey wrench into MGM’s own market plans, which banked on attracting gamblers from the densely populated Hartford area, which,

as it stands now, would be closer to a new casino in Springfield than to either Foxwoods or Mohegan.

If there are any doubts MGM is taking this threat very seriously, they were put to rest by the company’s president.

“We’re not going to go peacefully,” William Hornbuckle, president of MGM, told Bloomberg News, adding the gambling giant is “contemplating our options.”

MGM officials have since gone silent when asked to detail what sorts of counterattack the Las Vegas casino company is planning.

Lessons Learned From New Bedford

Certainly recent news developments about another would-be casino project in New Bedford show how the threat of nearby competition can wreak havoc with plans for a new gambling venue.

Development giant KG Urban recently pulled the plug on a proposal for a $650-million casino in New Bedford, citing longstanding challenges in lining up financing for the project.

The Mashpee Wampanoag tribe’s yearslong drive to open its own casino in the region has certainly been a wildcard, with a decision by the federal government on the plan expected at some point.

However, it certainly could not have helped that Rhode Island’s Twin River casino raised the stakes as well, laying out plans for its own satellite casino a few hundred feet from the Massachusetts border and just a short drive from New Bedford.

No one expects MGM to suddenly cancel its Springfield plans as a license to open a casino in gambling-happy Massachusetts nothing to sneeze at. But whether MGM can afford to go ahead with all $800-millionworth of its ambitious casino plan is an open question.

A rendering of the now-delayed MGM casino in Springfield.

MGM’s big and bold plan certainly impressed the Massachusetts Gaming Commission and helped the gambling giant bag the Western Massachusetts casino license.

Yet even before Connecticut rolled out plans for a counter casino, the scope of MGM’s plans –given the relatively modest Western Massachusetts market – was already being called into question by one of the region’s top gambling analysts, Clyde Barrow, formerly of the University of Massachusetts Dartmouth and now of the University of Texas.

For now, MGM is sticking, with its latest filings with the state gaming commission showing no change in its plans. That said, MGM’s decision to delay the opening of its grand Springfield casino certainly gives it extra time to consider its options, whether intended or not. n We’ll just have to wait and see.

Email: sbvanvoorhis@hotmail.com

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4

BANKER & TRADESMAN

AUGUST 3, 2015

Points ON THE PAYROLL

Proposed Changes To Overtime Regulations Could Affect Up To 5M Workers Opponents Say Workers Will Ultimately Bear The Costs

BY ANDREA EVANS ZOIA SPECIAL TO BANKER & TRADESMAN

E

nacted in 1938, the Fair Labor Standards Act introduced overtime regulations guaranteeing workers time-anda-half pay for all hours worked exceeding 40 per week. As overtime pay was designed as a protection for the blue-collar working class, certain exceptions were made to the FLSA’s overtime provisions, mostly for salaried employees doing non-manual labor, or those who may not work standard hours. In 1975, the year when the minimum salary threshANDREA ZOIA old to meet the overtime exemption was last significantly raised, 60 percent of salaried workers fell within the requirement of overtime pay. As the law currently stands, if you are a salaried employee and make less than $23,600 per year, you are eligible for time-and-ahalf pay for any hours you work in a week over 40. To put this in perspective, only approximately 8 percent of salaried workers are non-exempt.

In June the Department of Labor an-

nounced a proposed change to revamp the nation’s outdated overtime regulations that will limit the number of white-collar workers who will qualify for exemption from the overtime requirement. The proposed changes will more than double the minimum salary level required to meet the exemption to $50,440 per year. According to a fact sheet published by the Department of Labor, the change would expand the number of people eligible for overtime from about 8 percent of the salaried workforce to about 40 percent, covering 5 million more workers. The Department of Labor has proposed automatic updates to minimum salary levels each year, linked to either cost of living or to a fixed percentile of earnings for full-timed salary workers.

Either method will make an annual review of workers’ classifications whose salaries are close to meeting the exemption threshold an expensive employer necessity. A recent study commissioned by the National Retail Federation estimated employers could shell out as must as $874 million to update payroll systems, convert salaried employees to hourly, and track their hours if these or similar regulations are imposed.

Supporters anticipate a positive effect on job creation, income inequality and wage stagnation. Those opposed make the

argument that the change will not result in the intended income increases. Instead, the cost of increased overtime coverage will be borne by workers as employers set base wages taking into consideration increases in the form of overtime pay. Regardless, the changes will have the primary effects of forcing salaried workers to keep track of every hour they work.

The Internet Changes Everything

Since 1975, technology has dramatically altered the way we work. By one estimate, telecommuting (defined as working from home multiple days per week by individuals not self-employed) has risen 79 percent between 2005 and 2012. Flex schedules and telecommuting is a natural fit for many overtime-exempt employees as employers are not required to track their hours and are less concerned about where and when these employees do their work.

For many employees, overtime exempt status provides the best chance of excelling at their careers while fulfilling their obligations as parents. For employers, as long as the employee is overtime-exempt, all that matters is that the work gets done.

If the change goes into effect next year, 5 million more workers will join those overtime-eligible employees who are re-

quired to log their hours and account for where and when their work gets done. As most employers are aware, the risk for noncompliance with time-keeping and overtime payment may limit flex scheduling and work from home options. Instead the majority of these workers will be required to clock in and out on a schedule so the employer can precisely calculate their overtime obligations.

Regardless of whether the proposed overtime regulations ultimately result in increased income for the middle class, there are sure to be growing pains for all involved in the short term. The change in overtime rules will require employers to conduct a thorough analysis of how employees’ finite time is being used and compensated. Employers will have to update payroll systems, convert salaried employees to hourly, and track their hours. By necessity, there will be costs in the form of lost flexibly borne by those employees newly covered by the overtime requirements. n Andrea Evans Zoia is a lawyer at Boston labor and employment law firm Morgan, Brown & Joy LLP. She can be contacted at azoia@morganbrown.com or at (617) 788-5018.

THE NATION’S HOUSING

Helping Underwater Homeowners Move On Fannie Mae Policy Changes Gives Owners New Option

BY KENNETH R. HARNEY WASHINGTON POST COLUMNIST

C

ould a little-noticed policy change by giant mortgage investor Fannie Mae help homeowners who’d like to move but can’t because they’re underwater – they owe more to the bank than the likely selling price of their houses?

Could it help you?

Maybe. But you’re going to have to be able to qualify for a new mortgage to buy a new primary residence and rent out your current house, converting it into an investment KENNETH HARNEY property.

Here’s the background: Roughly 7.4 million American homeowners remain underwater as the result of plummeting prices during the housing bust and recession years, according to new data from research firm RealtyTrac. The vast majority have continued to make their mortgage payments on time and have maintained relatively good credit, say mortgage industry experts.

Many could qualify to purchase a new home but have been prevented from doing so. They either don’t have – or don’t wish to spend – the thousands of dollars needed to settle up with their lender as part of any sale. So they stay put. Daren Blomquist, vice president at RealtyTrac, estimates that 56 percent of

Many underwater homeowners could qualify to purchase a new home but have been prevented from doing so. They either don’t have – or don’t wish to spend – the thousands of dollars needed to settle up with their lender as part of any sale.

underwater borrowers have owned their homes for nine years or longer. Nearly three-quarters have owned for six years or more.

“These (are) the folks who most likely would have had some life circumstance that makes it necessary for them to move,” such as a new job, a bigger family or simply a desire to live in a different neighborhood, he told me last week.

Yet they haven’t because of their negative equity position.

Enter Fannie Mae’s recent policy change. With no fanfare or public announcement, Fannie has informed lenders that when owners seek to convert their primary homes to rental investment properties and buy a replacement home with a new mortgage, there will no longer be a minimum equity stake they’re required to have in the current home. Under previous rules, put in place during the last decade to counter fraud schemes, you needed at least 30 percent equity in your primary residence if you wanted to convert it into a rental, count-

ing the rent toward your qualifying income for a mortgage on a new primary home. Plus you needed six months of liquid financial assets.

That’s all changed. Now you don’t need a minimum equity amount. Nor do you need a mandatory six months of liquid reserves – maybe just two months.

In its notice to lenders, Fannie said it feels that it now has adequate controls on credit requirements, rental income and financial reserves in place to ensure that qualified borrowers who want to convert their primary homes into rental investments and buy a new house can do so responsibly.

Swim Test

How can this help owners who’ve been underwater and need a way out of their current houses? Take this real-life example. It involves a 37-year-old Maryland resident who bought her two-bedroom house at the peak of the price bubble – 2006. She owes $270,000 on it, but its current market value is just below

$200,000. She’s never missed a payment – $1,615 a month – and has FICO credit scores in the low 700s. She earns $65,000 a year and needs a larger home, ideally with three bedrooms.

According to Paul Skeens, president of Colonial Mortgage Group, who is handling her application, she’s a good candidate for Fannie’s revised approach. With her current $5,416 monthly income plus $1,125 in net new rental income ($1,500 rent minus a mandatory vacancy factor of 25 percent), she qualifies for a $1,608 monthly new mortgage payment on a $230,000 three-bedroom home in the area.

But does this sort of solution work for everybody with negative equity and a hankering to buy another house? Not by a long shot. It takes a special set of circumstances: Underwater owners have to be able to pass all the standard tests to qualify for the new mortgage – credit, debt-to-income ratios that include car payments plus payments on both the old and new mortgages, as well as at least a couple of months of reserves. They also need to be prepared to handle the duties of being a landlord, collecting rents and managing the property.

Then there’s the debt on the rental property. Over time the owners will still have to figure out how to pay it off.

They just won’t have to be stuck in the same old house while they do it. n Ken Harney’s email address is kenharney@earthlink.net.

5

BANKER & TRADESMAN

AUGUST 3, 2015

Points LOOK TO THE SUBURBS

Investment In Biotech Remains Hot Lab Market, Strained In Spots, Continues To Fill Needs For Industry’s Next Generation

BY PETER ABAIR SPECIAL TO BANKER & TRADESMAN

A

fter a record 2014, in which Massachusetts biotechs set records in amount of venture capital received and number of IPOs, the local industry remains red-hot in 2015. Through July, 33 Massachusetts biotechs had received $889 million in VC financing and nine biotechs hit the publicly traded markets, all with NASDAQ listings, to the tune of $660 million in initial offerings.

The continued PETER ABAIR strong performance of the state’s biopharma industry in the private and public financial markets bodes well for the near term, at very least. It is a very far cry from the financially troubling days of 2009 and 2010, when a tremendous industry concern was the high number of researchbased companies with only three to six months of cash on hand. Today, more common concerns are where to find workers and new laboratory space.

There have been significant life sciences real estate deals struck in the area over the past year, from GE Healthcare Life Sciences and Quest Diagnostics in Marlborough to Baxalta and Pfizer in Cambridge. These are all lease deals and expansions measured in the hundreds of

A new generation of companies rises in and beyond the shadows of the world’s biggest industry players in a lab market broad and deep enough throughout Eastern Massachusetts to sustain growth for years to come.

thousands of square feet. While these projects have grabbed headlines, as interesting is the movement of companies on those recent IPO and venture financing lists.

I’m not giving up any trade secrets in suggesting that biopharmas which are beneficiaries of recent VC financings or successful IPOs are also prime candidates for new or expanded lab and office spaces. Close to half of the 18 biotechs with IPOs in 2014 either expanded their spaces or moved to larger spaces soon after. Dicerna raised $90 million with its IPO in January 2014 and moved from Watertown to a larger space at Alewife just a year later. Akebia Therapeutics more than doubled its space at 245 First St. in Cambridge after its March 2014 IPO. T2 Biosystems expanded at Hartwell Avenue in Lexington after its August 2014 IPO and Tokai Pharmaceuticals moved out of its Cambridge incubator to 255 State St. in Boston after its September IPO.

More Movement In 2015

In 2015, such moves continue, with

Inotek Pharmaceuticals expanding at its space in Lexington after a February IPO and Blueprint Medicines moving a few blocks into significantly larger space on Sidney Street in Cambridge – even in advance of its successful April IPO. So, while larger projects often make a headline, these smaller projects are making some significant waves of their own. It speaks to the vitality of the industry but also the capacity of the commercial lab and office space market to accommodate such traffic. That capacity is strained in areas, certainly in Kendall Square, which has seen a $10 per square foot rise in lab rents since late 2012 and an even greater spike in office rents. The din is rising that there is simply not space for emerging biotechs and, for even those at mid-stage, pricing in the most-sought-after Kendall Square core is prohibitive.

Surely, it is a good time to be a lab owner-operator in Cambridge. In fact, times have never been better. For those small and mid-stage companies looking

for space, however, there are options – just as there always have been. We’ve noted the inner- and outer-suburb opportunities in the past, but if biopharma companies need proof that life exists beyond Binney and Albany streets, take another look at the VC and IPO lists.

Of the 33 biotechs receiving venture capital thus in 2015, 21 do have homes in Cambridge. Indeed, 840 Memorial Drive is the “2015 VC-winner,” housing three companies that were VC-backed – Mersana Therapeutics, Pronutria Biosciences and Dimension Therapeutics. But 11 on the VC list are beyond Cambridge, including three in Lexington (99 Hayden Ave. houses VC recipients Pulmatrix and Macrolide Pharmaceuticals).

The IPO list is better news for the ’burbs. Six of the nine Massachusetts biopharmas that became publicly traded in 2015 have addresses outside of Cambridge – in Boston, Waltham, Lexington, Burlington, Canton and Billerica.

The hot streak continues. The industry grows. Kendall Square remains the most dynamic setting for the industry in the world. And, a new generation of companies rises in and beyond the shadows of the world’s biggest industry players in a lab market broad and deep enough throughout Eastern Massachusetts to sustain growth for years to come. n Peter Abair is executive director of the MassBioEd Foundation.

SICK LEAVE LAW UPDATE

Employers Scrambling To Comply With Earned Sick Time Law AG Issues Final Regs And Safe Harbor For Some

BY SEAN P. O’CONNOR SPECIAL TO BANKER & TRADESMAN

B

y now, most employers should know that the Massachusetts earned sick time law, which was first approved

by Massachusetts voters in the November 2014 election, went into effect on July 1, 2015. Through the law, Massachusetts joins California, Connecticut and Oregon, as well as a number of municipalities throughout the country, in requiring employers to provide SEAN P. O’CONNOR earned sick time to employees. Unfortunately for employers, questions about the law still remain unanswered even after the Office of the Attorney General issued the final regulations governing its application on June 19, 2015. As a result, many employers are still scrambling to ensure their compliance with this new, ground-breaking law.

The law, in short, provides that employees may use up to 40 hours of sick time per year, accruing at least one hour of sick time for every 30 hours worked. If an employer has 11 or more employees, the sick time must be paid; otherwise, the sick time may be unpaid. Aside from a few narrow exceptions, all full-time, part-time, seasonal and temporary employees are entitled to earn and use sick time if Massachusetts is their primary place of employment. Covered employees are permitted to carry over up to 40

Under the law’s strict anti-retaliation provisions, employers are prohibited from taking any adverse actions against employees for proper use of their earned sick time. hours of sick time at the end of the benefit year, though employers can cap employees’ accrual at a total of 40 hours during any benefit year.

The regulations contain many other obligations and requirements, but also provide employers with various options in an attempt to afford some level of flexibility.

For example, employers that prefer not to track accrual of sick time can instead offer a lump sum of benefit time that is prorated based upon employees’ average hours worked. Employers who want to incentivize employees to avoid unnecessary use of sick time can also provide cash payouts for accrued but unused sick time at the end of the year, though there is no requirement that they do so.

Employers with pre-existing sick leave or paid time off policies are also permitted to modify their current policies instead of adopting entirely new policies so long as they provide for the same protections and rights as employees would get under the earned sick time law. The Office of the Attorney General even provided a “safe harbor” for 2015 to employers with such preexisting policies. There is no one-size-fits-all approach for employers in designing their new earned sick time policies.

Employers also face significant challenges with the implementation and enforcement of their policies. Earned sick time is not supposed to be a get-out-of-work-free pass for employees, as they are only allowed to use it for certain reasons covered under the law (e.g. to care for the employee’s own physical or mental illness). However, the reality is that employers have been left in a troublesome situation when it comes to protecting against employees’ abuse of sick time. Under the law’s strict anti-retaliation provisions, employers are prohibited from taking any adverse actions against employees for proper use of their earned sick time. Instead, employers are only permitted to discipline employees who are found to commit fraud or abuse of their sick time.

Employers face an uphill battle in trying to meet that standard.

A Number Of Challenges

In theory, the final regulations attempt to provide some protection to employers; however, in practice employers should tread carefully as challenges to employees’ use of sick time will undoubtedly be met with complaints to the attorney general or civil lawsuits. According to the regulations, abuse of sick time can be inferred where employees

exhibit a clear pattern of using it on days just before or after a weekend, vacation or holiday. The regulations also provide that sick time is not supposed to be invoked as a general excuse to be late for work.

However, employers need to exercise significant caution because an employee’s absence or tardiness must still be excused – and the employee cannot be disciplined – if it is actually related to one of the law’s permissible reasons for leave (e.g. when employees are unexpectedly sick, causing them to be late or absent for work). In most situations, employers will also be unable to ask for proof of why employees miss work because the regulations contain stringent restrictions on when employers can require documentation to substantiate employees’ use of sick time. Consequently, employers are left with few resources to assist with the difficult task of discerning when an employee has misused sick time.

Overall, the earned sick leave law is presenting a number of challenges for employers thus far. Attorney General Maura Healey is charged with enforcement of the law and we are hopeful that she will take a reasonable approach as employers attempt to comply. Still, employees can also seek enforcement through civil lawsuits – and they aren’t always as understanding. n Sean P. O’Connor is a partner at Morgan, Brown & Joy LLP, representing employers in a variety of labor and employment matters. He can be reached at (617) 788-5057 or at soconnor@morganbrown.com

6

BANKER & TRADESMAN

AUGUST 3, 2015

By The Numbers

SPOTLIGHT: Gosnold

a weekly compendium of data and arcana

YEAR SETTLED: 1641 YEAR INCORPORATED AS A TOWN: 1864 TOTAL AREA: 140.2 square miles POPULATION: 52

COUNTY CLOSE-UP

STATISTICAL SNAPSHOT

DUKES/ NANTUCKET

MEDIAN SALES PRICE Jan.-June 2015

Community Aquinnah

Change from 2014

n/a

SALES VOLUME Jan.-June Change from 2015 2014

n/a n/a

n/a

Chilmark

$1,337,500 7.00% 7 0.00%

Edgartown

$628,125 1.43% 40 14.29%

Gosnold has the smallest population in Massachusetts.

Gosnold

n/a

n/a n/a

n/a

DENSITY: 6 per square mile

Oak Bluffs

$473,750

10.02%

30

-21.05%

Tisbury

$571,764 8.91% 21 -16.00%

West Tisbury

$530,000

6.21%

11

22.22%

Dukes County

$565,000

7.11%

111

-5.93%

TAX RATES: Residential: $2.43 Commercial: $2.43 TOTAL NUMBER OF HOUSING UNITS: 215

MEDIAN SALES PRICES 2000000 $2,000,000

Dukes

1500000 $1,500,000

Massachusetts

Nantucket

1000000 $1,000,000 $500,000 500000

00

1,629.65 0.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15

Nantucket

’06

“But with all his wisdom, with all his superior functions of judging, comparing and admiring the beauties of creation; man is man’s worst foe!”

❏ Statistics based on single-family home sales of $1,000 and above, excluding condominiums and foreclosure deeds ❏ Source: The Warren Group

❏ All sales thru June YTD ❏ Graph based on single-family home sales of $1,000 and above, excluding condominiums and foreclosure deeds ❏ Source: The Warren Group

TOP 3 MORTGAGE LENDERS

SALES VOLUME 150

150

$1,350,000 22.73% 67 -14.10%

Dukes

Dukes

2015* Rank

Nantucket

120

Lender

Percent of Market Share

Marthas Vineyard Saving Bank

19.05%

2014* Rank

120

— Paul Cuffee (1759–1817),

90

2015* Rank

60

60

Cape Cod Five Cents Savings Bank

2014* Rank

15.05%

30 0 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

❏ All sales thru June YTD ❏ Graph based on single-family home sales of $1,000 and above, excluding condominiums and foreclosure deeds ❏ Source: The Warren Group

Percent of Market Share

Lender

Nantucket

30

0

3

3

captain and abolitionist, former resident of Gosnold

1

2

Edgartown National Bank 9.33% TOP 4 3 MORTGAGE LENDERS

90

Quaker business man, sea

1

1

1 1

Cape Cod Cod Five Five Cents Cents Savings Savings Bank Bank Cape

20.01% 18.57%

2

3 2

CapeBlue CodHills Cooperative Bank Bank

6.30% 12.47%

3

6 3

Quicken Loan

Hingham Institute forInc Savings

3.81% 10.08%

*2015 & 2014 Rank / Market share stats include loans filed through April March ❏ Market share percentage based on number of mortgages ❏ Source: The Warren Group

TOP 10 EXISTING HOME SALES Rank

Street Address Community

Buyer Seller

Date Price

Rank

Street Address Community

Buyer Seller

Date Price

1

105 Low Beach Rd. Nantucket

Robert Forman Jason R. Briggs

5/28/15 $5,320,000

6

26 Old Tom Nevers Rd. Nantucket

Anthony A. Branca ACK Holdings Ltd

6/19/15 $2,650,000

2

3 Periwinkle Ln. Chilmark

AYTB LLC Gary Fudem

6/16/15 $3,200,000

7

25 Starbuck Rd. Nantucket

Gregory Segall Meer Family LP

5/7/15 $2,427,500

3

14 Vestal St. Nantucket

N3 Associates LLC Nicholas T. Voulgaris

6/26/15 $3,100,000

8

4 Quince St. Nantucket

4 Quince Street T. Dale Hamilton

4/6/15 $2,337,500

4

379 Barnes Rd. Oak Bluffs

Perkins FT Debra A. Olmstead

4/15/15 $3,000,000

9

2 Town Lot Cir. Edgartown

MV Properties LLC Allen D. Hecht

5/28/15 $2,325,000

5

13 Boldwater Rd. Edgartown

Akacmv LLC Evan W. Thomas

5/28/15 $2,995,000

10

36 Main Sias St. Nantucket

Marconi Station LLC George W. Bilicic Jr.

6/22/15 $2,200,000

❏ Statistics from April-June 2015

❏ New Construction Excluded

❏ Source: The Warren Group

7

BANKER & TRADESMAN

AUGUST 3, 2015

In Person

The Road From Rock And Roll To Realtor

BY JIM MORRISON | BANKER & TRADESMAN STAFF

After graduating from UMass Amherst, Bill Janovitz spent the ’90s touring and recording with Buffalo Tom. He and his wife, Laura, bought a home in Lexington in 1997 and after their first child was born, he started selling real estate there. Janovitz and his business partner John Tse now specialize in the modernist communities in and around Lexington. When he’s not selling houses, Janovitz still plays and records with Buffalo Tom and other bands, has written two books about The Rolling Stones, and maintains a website, aptly called “Part-time Man of Rock.”

Bill Janovitz

Title: Vice President, William Raveis Real Estate, Lexington Age: 49 Experience: 14 years

Q:

the rest of the day was getting to the gig, going to record stores, meeting reps, shaking hands, going on radio shows. It’s like kissing babies and trying to sell, like running a business.

How did you go from being a full-time rock musician to becoming a real estate agent?

A:

It was always in the back of my mind. I’ve always been very pragmatic – even as a rock ’n’ roll musician.

I used to think, “Where is this thing going?” So I wondered, “Am I going to be 55 and still trying to make a living on the road?”

We had business managers, we had agents, but we were also independent. We learned a lot of skills and business stuff, but most importantly, it was feast or famine, so once you get used to that lifestyle, you’re something of a hustler. If you’re not a born hustler, you develop into hustling. You have a life where you get paid in lump sums and you know (or learn) how to have the discipline to pay yourself a stipend over time. All those skills were invaluable. We also learned to use technology to promote the band back then as well. Marketing and selfpromotion is a big part of it.

Then a lot of things conspired. We were having kids and we just decided to take a hiatus from the tour-recordtour cycle. I tried to launch a solo career, but that wasn’t going to pay the bills. Then, when my daughter was 2 years old, in 2001, I was doing a tour. It was right after 9/11, everything was a bummer. I remember being in New York at a friend’s apartment and I decided to go get my real estate license. Two weeks later I was standing in the office of DeWolfe real estate office wondering how I was going to make it work.

Q:

Did you have trouble getting people to take you seriously

That’s just the way the business is, but after you’ve been in it for a while, you realize there’s plenty to go around.

After a while it’s the top agents dealing with the top agents and you have cordial relationships with everyone and it’s all cool. It’s just a friendly, gritted-teeth business in a lot of ways.

Q:

Do you still meet Buffalo Tom fans in the course of your

work?

A:

Yeah, it’s funny. Some people have definitely sought me out because of that, but it’s more often the case that it’s coincidental. Like casual fans who make the connection to the music while we’re working together. It’s cool, but it can be awkward for me now. I don’t try to promote that. I try to keep them parallel. I don’t mind if they overlap, but it’s not something I try to force.

at first?

A:

Q:

Yes, a little bit. It was more about my youth back then. I was in my mid-30s and I was by far the youngest person I knew in the business in Lexington. I got a lot of passive-aggression from some of the other agents when I started out. Or they were just territorial, like I was just another person trying to take away their market share.

How did your music career prepare you for the real estate business?

A:

When I was on a tour, something like 1 to 2 percent of the day – if that – was spent performing and

Back when we started, my manager told me, “You’ve got to use any angle you can to differentiate yourself,” but it’s hard to be artful about something like that.

I don’t want people to hire me because of this other thing I did; I want them to hire me because they think I’m going to do a great job for them. n

JANOVITZ’S TOP 5 BOSTON-AREA EXAMPLES OF MODERNIST HOMES:

1

Six Moon Hill, Lexington

2

Snake Hill, Belmont

3

The Hoover House, Lincoln

4

The Gropius House, Lincoln

5

Peacock Farm, Lexington

8

BANKER & TRADESMAN

AUGUST 3, 2015

Commercial & Industrial Continued from Page 1

One Seaport Square Seaport Boulevard, South Boston $600 million 834 apartments, 260,000 square feet of retail Developers: Berkshire Group, Boston Global Investors and Morgan Stanley Completion date: 2017 The next stage of development in the Seaport District includes a major residential component, as the booming waterfront becomes more of a 24-7 neighborhood.

One Seaport Square will consist of two 22-story buildings with two apartment complexes: the Benjamin, ranging from studios to three bedrooms, and the Via, which will include 96 “innovation” units, lower-cost studios and one-bedrooms. Kings nightclub, a Showplace Icon theater complex and Equinox fitness club will anchor the lower-level retail space.

Brigham and Women’s Hospital Building for the Future 75 Francis St., Longwood Medical Area $450 million Developer: Leggat McCall Construction manager: Suffolk Construction Completion date: Spring 2016 Boston’s deep roster of “meds and eds” – the health care and higher education sectors – kept the construction industry alive during the recession.

The institutions’ projects have been overshadowed in recent years by glassy office towers and luxurious residential projects, but schools and hospitals continue to play a major role. Brigham and Women’s “Hospital Building for the Future” will include lab space and ambulatory care practices. About 75 percent of the building will be devoted to research, as Brigham and Women’s consolidates lab leases from across the city.

$350 million 17-story, 534,000-square-foot office tower Developer: The Fallon Co. Construction manager: Turner Construction Completion date: Spring 2016 Law firm Goodwin Procter opted to leave its downtown digs at 53 State St. in favor of a glassy new office tower on the South Boston waterfront, leasing all 500,000 square feet in the 17-story structure built by The Fallon Co.

MARBLE & GRANITE AUCTION Sunday, August 9th 1:00pm

888 Boylston St.

120 Quarry Drive, Milford, MA 01757

Natixis Global Asset Management Headquarters $271.5 million 17-story, 386,000-square-foot office tower Developer: Boston Properties Construction Manager: Turner Construction Completion date: Fall 2016 Developer Boston Properties was so confident in the Boston office market that it started construction on this 17-story office tower last year with only 30 percent of the building preleased. Natixis Global Asset Management is the anchor tenant, moving its headquarters from 399 Boylston St.

Preview: Saturday, August 8th: 9:00am - 1:00pm Day of Sale: 9am-1pm Marble & Granite

Onyx & Slate

Limestone

Travertine

Pavers

Tiles & Countertops

Hand Carved Marble Statues

Sold per square foot to suit the buyers.

Homeowners Welcome!

Terms: Visa, M/C, Discover, AmEx, Cash or Cashiers Check. Valid State ID required. 10% buyers premium. Delivery & Storage Available.

For More Information:

1-800-278-9088 WHERE:

OWNER:

Burlington

The Davis Cos.

WHAT:

The Center at Corporate Drive

Each week, Banker & Tradesman commercial real estate reporter Steve Adams spotlights a commercial real estate property in Massachusetts notable for its high deal activity, unique design or one-of-a-kind special features.

WHY IT’S HOT:

• The Davis Cos. of Boston has executed 156,848 square feet of new leases and renewals at The Center at Corporate Drive in Burlington since September 2013.

• TDC and Principal Real Estate Investors acquired the 47-acre property formerly known as Burlington Centre for $109 million. The park contains 486,719 square feet of office space in four buildings and a potential development site.

• Improvements under the new ownership include a 7,850-square-foot cafeteria with flexible conference space, a 2,100-square-foot fitness area with a yoga room, new showers and locker facilities, a 4,500-square-foot outdoor patio with activated green space and collaboration spaces with wi-fi connectivity.

• New tenants have leased an aggregate 51,157 square feet of space. The companies include Robert Half International, Consolidated Edison, GE Ionics, 3SI, KnowledgePath, MicroFocus and CSC Service Works.

• CBRE is representing The Davis Cos. to lease the office park’s 64,000 remaining square footage.

THEY SAID IT:

“We strive to create office environments that promote community, collaboration and conservation, together with quality and efficiency. Our goal was to transform this park into a campus setting with a more modern, cohesive feel for our existing and future tenants.”

— Cappy Duame, managing director of asset management, The Davis Cos.

THINK YOUR PROPERTY IS HOT? Drop Steve a line at sadams@thewarrengroup.com

100 Northern Ave. (Fan Pier parcel I)

BUILT:

1990–2009

9

BANKER & TRADESMAN

AUGUST 3, 2015

101 Seaport

Avalon North Station

$265 million 17-story, 440,000-square-foot office tower Developer: Skanska USA Construction manager: Skanska USA Completion date: October 2015 Like Goodwin Procter, business consultants PwC couldn’t resist the lure of the waterfront when they signed on as anchor tenant at 101 Seaport. PwC will leave behind 376,000 square feet at 125 High St. in the Financial District; most of that space has already been snapped up by Houghton Mifflin Harcourt and Wells Fargo.

$200 million Developer: AvalonBay Communities Completion date: 2017 Avalon North Station – a 38-story tower rising next to the TD Garden – will become Boston’s tallest apartment building when it’s completed in 2017. But it’s next door to a largermixed-use development that could dwarf the sports arena as the northern gateway to the city. Boston Properties has approvals to build a $950-million complex containing nearly 2 million square feet of offices, residences and retail stores.

Northeastern University Interdisciplinary Science & Engineering Complex

One Canal

$225 million

Construction manager: Suffolk Construction Completion date: 2016

$200 million Developer: Trinity Financial

Northeastern University’s Interdisciplinary Science and Engineering Complex expands the university’s presence in Roxbury, part of the school’s strategy of increasing community engagement.

The 220,000-square-foot complex will contain labs, classrooms and offices for faculty and graduate students.

General contractor:

John Moriarty Assoc.

Completion date: Early 2016 The Big Dig is fading into memory, but it continues to influence development patterns.

Trinity Financial is building 320 luxury apartments and 21,000 square feet of retail in this 435,000-square-foot complex overlooking the Greenway near the Haymarket bus station. The Massachusetts Department of Transportation, which owns part of this former Central Artery parcel, selected Trinity after a previous developer failed to make progress. n

Twenty-Two Liberty Fan Pier Parcel C $220 million Developer: The Fallon Co. Construction manager: Turner Construction Completion date: Fall 2015 Developer Joseph Fallon opted to build condos on the South Boston Fan Pier while most developers in the neighborhood were chasing the luxury apartment market. The strategy has paid off with all 111 units sold out ahead of this fall’s grand opening. “We have unobstructed views of the harbor and there’s not a lot of waterfront property in Boston,” Fallon told Banker & Tradesman earlier this year. “The real issue is there’s not been a lot of new (condo) product; a lot of rentals, but none for sale.”

Email: sadams@thewarrengroup.com

Banking & Lending Financial Institutions Try A New Approach To Incubating Technology Continued from Page 1 of financial services, from investment to real estate to financial literacy to prepaid cards.

Elsen, an investment platform that was among the four selected for CoE’s inaugural year, ultimately wound up raising $400,000 in investment money and moving into its own office, just a short distance from the center where it spent six months working and brainstorming.

“It’s been very rewarding for us, but also for those entrepreneurs who may have not had the opportunity to work with a financial services company,” said David Araujo, DCU’s vice president of information systems.

DCU selected seven fintech startups from among 15 that applied for the same opportunity this year. Those seven startups will get free access to work in the center, located at 695 Atlantic Ave. They’ll get Internet access, coffee and conference rooms, but beyond that, they’ll also have the opportunity to network with peer startups and to pick the brains of DCU’s leadership team.

He said the credit union has roped Fidelity, State Street and Eastern Bank into the effort as well, with the idea that it may be able to help forge mutually beneficial relationships between these fetal fintech companies and major financial institutions.

“Through relationships, we can then bring these folks to those companies so they can have a better shot at getting into the doors of those organizations,” Araujo said.

And what’s in it for the credit union?

“We’re learning through the process.

It’s really about giving back to the com-

munity and the financial services industry as a whole and giving entrepreneurs opportunities,” he said. “This will help us learn what’s going on in the financial services industry. It’s a resource opportunity for us.”

Paths To Deployment

With the Center of Excellence, DCU joins a growing number of other financial institutions rolling out tech incubators as traditional financial institutions scramble for survival in an increasingly digital, increasingly mobile age. Count among them Capital One, Citi, Chase and Visa. Fidelity Labs is also based in Boston and so is State Street’s GX Investment Labs. And on the community

banking scene, Eastern Bank made a splash last year when it launched its own tech incubator, Eastern Labs.

But as more financial institutions roll out their own labs or incubators, it may be worth also questioning whether the effort contains a clear path to deployment or assessment of those cool new technologies – or if it’s just a shiny new toy.

“I’m loathe to name names, but some of the large ones feel more to me like they’re simply investment vehicles as opposed to mechanisms for assessment or deployment,” said Ron Shevlin, a director of research at Cornerstone Advisors. “Some of them, it seems like they’ve got a lot of money to spend so

let’s go find great investments. Why not jump on that bandwagon?”

Shevlin also said that from a conceptual perspective, the incubator idea is not exactly a new one. He drew parallels between that and the Internet-only bank subsidiaries launched by financial institutions in the late ’90s during the dotcom boom – for instance, the now-defunct WingspanBank, launched by Bank One Corp., which has since merged into JP Morgan Chase & Co. While he was less familiar with DCU’s initiative, Shevlin did praise Eastern Labs for its clear path to deployment.

Eastern Labs was tasked, among other things, with analyzing data the bank already has on its customers to figure out how it might better tweak its products and services, said Dan O’Malley, the chief digital officer of Eastern Bank and head of Eastern Labs.

“My perspective is that banks need to innovate or diet, meaning they need to either be investing in innovation or slimming down and preparing to shrink,” O’Malley said.

O’Malley, who expressed respect for DCU’s Center of Excellence initiative, also countered the perception that investing in technology must necessarily be out of reach for community banks.

“Eastern is a mid-sized, $10-billion bank. We’re doing it and it’s going well.

I certainly think it’s possible. I just think you have to be able to build a strategy and a case to take to your board and your stakeholders to get them to buy into the investment,” he said. “The challenge is that bankers aren’t always great at building a case for investment in technology.” n Email: lalix@thewarrengroup.com

10

BANKER & TRADESMAN

AUGUST 3, 2015

Residential Real Estate CHANGES COMING

Education Is The Key To A Smooth TRID Implementation New Mortgage Rules Will Give Buyers More Info, Protection

BY JIM MORRISON BANKER & TRADESMAN STAFF

T

hough the delay no doubt gave the industry a collective moment to catch its breath, the relief is short-lived: the new TILA-RESPA Integrated Disclosure (TRID) rules are still coming. But all the anxious anticipation may come to nothing; industry insiders say they think the transition will be easier than expected.

Now scheduled to take effect on Oct. 3, all loans made after that date will have to be TRID-compliant.

Eric Asman is a loan officer with Fairway Independent Mortgages in Marlborough.

His company has produced materials to help coach real estate agents through the changes to minimize problems.

“The changes are going to affect Realtors because they’re going to have to coach homebuyers,” Asman said. “They can’t go changing things at the eleventh hour and expect to close on time. All this is to make things better for the consumer, which is what we should all be shooting for.”

Asman said he thinks the changes are all for the better and he doesn’t expect any long-term difficulties with implementing the new rules.

“The changes that came from the DoddFrank Act in 2010 were much bigger,” Asman said. “It was difficult, but we got through it. This will be smoother.”

The new rules are intended to simplify the loan process and protect homebuyers, giving homebuyers more information, sooner, to try to avoid overwhelming them at the closing table.

Once the new rules take effect, the initial

“The changes that came from the Dodd-Frank Act in 2010 were much bigger. It was difficult, but we got through it. This will be smoother.”

— Eric Asman, loan officer, Fairway Independent Mortgage Corp.

disclosure forms – currently the good faith estimate and Truth-In-Lending statement – will be combined into a new document called a loan estimate (LE). The LE must be delivered to the homebuyer or placed in the mail within three business days of application.

In addition, the forms currently known as the final Truth-In-Lending statement and the HUD-1 settlement statement will be referred to as the closing disclosure (CD). The CD must be provided to the buyer at least three days before closing so the buyer has time to review and understand them. Any significant last-minute changes to the terms of the deal may trigger a three-day postponement of the closing date.

While it doesn’t happen often, occasionally a significant defect in a home – such as a failed water heater – is discovered during the buyer’s final walk-through, which is often scheduled just hours before the closing. If the cost of repairing the problem is significant enough that it changes the terms of the deal, under the new rules, it will delay the closing at least three days.

David Stenberg is the Boston-area manager for Hammond Real Estate. Stenberg

said most agents will take their cues from the attorneys representing the banks to minimize disruptions in the process. He said that it may take a while before brokers are comfortable with the new rules, but he agrees that it will be a relatively smooth transition.

“In the scheme of things, maybe we’ll have to do our walkthrough three days before closing,” Stenberg said. “There’s going to be more preparation and more work in advance of the closing, and that will be adjustment. Sometimes these things sound complicated, but they usually come off without a great deal of confusion.”

‘A Nightmare Scenario’

Rona Fischman owns 4Buyers Real Estate in Cambridge. Fischman said the changes are “a mixed bag” and may cause a few headaches in the early days of implementation, but she thinks that the more organized agents will be able to plan ahead and work with lenders and attorneys to avoid unnecessary delays.

“One thing is just fabulous is the good faith estimate and paperwork at closing are in the same format. I love that,” Fischman said. “Having a three-day wait period before the appraisal is going to slow

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AGENT: Gail Roberts, Coldwell Banker SOLD: 7/10/2015

1

PRICE: $8,000,000 SIZE: 4,162 square feet (two buildings) on 2.4 acres BUYER: Kurt F. Somerville SELLER: 181 Eel Point Road LLC AGENT: Mimi Huber, Lee Real Estate SOLD: 7/8/2015

3

NEWTON

ADDRESS: 241 Greenwood St., Newton PRICE: $2,700,000 SIZE: 7,479 square feet on 1.84 acres BUYER: Holger Boerner SELLER: Scott D. Freeman AGENT: Deborah M. Gordon, Coldwell Banker SOLD: 7/7/2015

1 Compiled by Jim Morrison, residential real estate reporter.

4

Wellesley

BUYER: Christina L. Brazelton

ADDRESS: 181 Eel Point Road, Nantucket

The property in the top spot this week sold for more than twice as much as the runner-up. This two-home compound on the west end of Nantucket sits atop a knoll overlooking hundreds of acres of conservation land. The three-bedroom main house was built in 1983.

The two-bedroom guest house was built in 1990 and features two private suites and a second-floor sleeping loft.

WELLESLEY

SIZE: 6,321 square feet on .27 acres

NANTUCKET

Email: jmorrison@thewarrengroup.com

ADDRESS: 23 Hawthorne St.,

Cambridge

3

things down a little, but we’ll absorb that and get used to it. If you’re not planning ahead, you’re not doing your service.”

Fischman said the biggest potential for problems will be the domino effect if a closing is delayed at the last minute and the seller is relying on the proceeds from the sale of their property to purchase another property, and the owner of that property is also relying on the sale to buy their next property.

“That would be the nightmare scenario,” Fischman said, “and it will happen.”

David Datz is a real estate attorney with offices in Boston and Cape Cod. He said his office has trained some real estate agents and attorneys on the new changes and will be doing more as the implementation date approaches. He said he is also writing a welcome letter that he will send to agents that will explain what they have to do and when they have to do it.

Datz said his office includes language in their purchase and sale agreements that protects buyers from defaulting in the case of a domino effect that isn’t their fault, but delay scenarios like that are possible and sometimes unavoidable.

“If you do this work long enough, you’ll see it all, but it’s like gambling in Vegas,” Datz said. “If you want to maximize your chances for success, you gamble safely and thoughtfully and you make sure that the odds are more in your favor than not.

That’s all we can do, because nothing in the world is guaranteed 100 percent, but it helps to work with good Realtors and mortgage brokers.” n

Mazen Eneyni SELLER: Nainoor C. Thakore and Sangita Thakore AGENTS: Donna Scott and David McDonough SOLD: 7/8/2015

WINCHESTER ADDRESS: 29 Central St.,

5

Winchester PRICE: $2,490,000 SIZE: 4,842 square feet on .37 acres BUYER: Dayton R. Ogden and Laura E. Ogden SELLER: Bahaa W. Fam and Carol L. Nowacki SOLD: 7/9/2015

11

BANKER & TRADESMAN

AUGUST 3, 2015

Briefs

BofA Announces New CFO

Rojas, Downs Join BRA, EDIC Boards

B

P

aul Donofrio was named Bank of America’s new chief financial officer, effective Aug. 1, as part of a series of management changes within the company, the company announced.

Donofrio, who has been with BofA since 1999, will replace Bruce Thompson who worked as chief risk officer and CFO for five and a half years. Thompson will assist Donofrio and remain on the management team until the end of the year.

Prior to being named strategic finance executive for BofA, functioning as CFO of consumer banking and global wealth and investment management, Donofrio was co-head of global corporate and investment banking, co-head of global investment banking and head of global corporate banking. n

Leader Bank Hires Cowher

Priscilla Rojas

Carol Downs

oston Mayor Martin Walsh has nominated Priscilla Rojas of John Hancock Financial and Carol Downs, co-owner and general manager of Bella Luna & The Milky Way in Jamaica Plain, to the Boston Redevelopment Authority (BRA) and Economic Development Industrial Corp. (EDIC) board of directors. Rojas and Downs will replace Consuelo Gonzales-Thornell and Paul Foster, whose terms on the board have expired.

The five-member board of directors is

made up of four mayoral appointees and one appointee selected by the governor.

Walsh’s nominees will require confirmation by the Boston City Council before they can assume their duties. “As change continues at the BRA, I’m excited for the new perspectives that Priscilla and Carol will bring to the table,” Walsh said in a statement. “I’m confident that their diverse backgrounds in business and development will benefit our city as we move forward.” n

Garland To Manage South Shore Bank In Beverly

J

ulieann Garland has been named the as the new sales and service manager of North Shore Bank’s Beverly office, which will involve her working with individual customers and small business to help them meet financial goals. “We’re delighted to have Julie managing our Beverly branch,” David J. LaFlamme, CEO, said in a statement. “Her experience in the financial service industry and her knowledge of the local community will be a tremendous asset to residents and businesses in Beverly.” Garland has worked for North Shore Bank since 2001. n

C

hris Cowher has joined Arlington-based Leader Bank as a senior residential loan officer.

“We are very pleased that Chris has chosen to join the Leader Bank team,” Sushil Tuli, president and CEO of Leader Bank, said in a statement. “I have no doubt that Chris’s experience and dedication to customer service will make him an invaluable addition to our residential lending department.” Cowher will be based out of the Arlington Heights branch located at 1201 Massachusetts Ave. in Arlington. n

You can follow,

or be the leader that makes things happen.

Nicoletti Joins NAI Hunneman

J

im Nicoletti has joined

NAI Hunneman’s leasing and advisory service team as executive vice president, focusing on landlord and tenant representation in the Central Route 128/ Cambridge corridor. Nicoletti has more than 30 years experience in commercial real estate, working as an executive vice president and partner at CBRE where he leased or sold more than 25 million square feet of transactions. Most recently, he was director of admissions at Boston College High School. Nicoletti is a past winner of the Insignia/ESG National Industrial Broker of the Year award and in 2004 was named Commercial Broker of the Year by the Greater Boston Real Estate Board/CBA. He is past president of both the Commercial Brokers’ Association and the New England Chapter of the Society of Office and Industrial Realtors. n

With the support of our Commercial Services Team, your business can be the leader.

Make things happen, choose Savers Bank today.

saversbank.com • 800.649.3036

Member FDIC

Member SIF

Equal Housing Lender

12

BANKER & TRADESMAN

AUGUST 3, 2015

STAY CONNECTED. BE INFORMED. KEEP UP-TO-DATE.

SPECIAL SECTIONS AND EVENTS CALENDAR FEATURED SECTIONS

Calling All Credit Union Heroes!

Do you work with a Credit Union Hero? That is, do you work with someone who you admire for their unmatched ability and strong will in the industry? Does this person also selflessly serve his or her

AUGUST

NOVEMBER

Business Profiles We will help you tell your company’s story and share your successes with the finance and real estate industries.

Continuing Education A requirement for some professions and strongly recommended in others, the Greater Boston area has continuing education options in abundance.

Fast 50 The 50 fastest-growing mortgage lenders in Massachusetts.

DECEMBER

community? Well, Banker & Tradesman is holding out for these Credit Union Heroes, and we need your help to find them.

Help us identify those worthy recipients who work tirelessly

SEPTEMBER Credit Union Heroes B&T’s Credit Union Heroes Reception September 29, 5:30 p.m.

Courtyard Marriott Boston 275 Tremont Street

not only to deliver superior customer service but also to better the community. We’ll

OCTOBER

honor the winners with a special Banker & Tradesman feature in September as well as at an awards reception later in the month.

Hurry, nominations close August 14! Nominate now at WWW.THEWARRENGROUPEVENTS.COM/ CREDITUNIONHEROES

PRISM Awards Celebrating the winners of the Builders Association of Greater Boston’s 2015 PRISM Awards, recognizing projects and achievements of homebuilding professionals.

B&T’s Best Join us as we celebrate the winners of B&T’s Best!

October 21 | 5:30 p.m. - 7:30 p.m.

Omni Parker House 60 School Street Boston, MA 02108

Legal Trends Laws and legislation touch all aspects of banking, real estate and development – a look at what’s happened in 2015, and what’s coming up in 2016.

Philanthropy Now in its second year, Banker & Tradesman recognizes finance and real estate professionals and firms that have strong commitments to bettering their communities.

JANUARY BankWorld BankWorld is your opportunity to learn about emerging opportunities and innovative solutions for the banking industry at the Northeast’s largest and most exciting banking show. www.bankworldexpo.com

The New England Mortgage Expo The New England Mortgage Expo is the nation’s largest regional mortgage conference – both residential and commercial. www.nemortgageexpo.com

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CREDIT UNION

LEADERSHIP, INTEGRITY,

SEPT. 2015

COMMITMENT

Presented by

HELP US IDENTIFY THE REGION’S

CREDIT UNION HEROES

Credit Union professinoals are often recognized for generating a large amount of loans or opening a high volume of new accounts. But what about those who think beyond the bottom line and work to benefit the community the credit union serves? Banker & Tradesman is setting out to find those heroes of the industry – the individuals who are admired for their ability, courage and strength.

Help us identify worthy recipients who work tirelessly to not only deliver superior customer service, but also serve the community. We will honor the winners with a special Banker & Tradesman feature in September and again at an awards reception later in the month.

It’s easy to nominate an individual worthy of this honor. Just fill out the online nomination. Self-nominations are acceptable.

We’re looking forward to your nominations and giving due recognition to Credit Union Heroes in our region! Thank you for your help!

When:

SEPTEMBER 29, 2015 Where:

COURTYARD MARRIOTT BOSTON

CREDIT UNION HEROES MUST BE: •

A Massachusetts credit union employee.

•

Someone who consistently gives back to the industry and the community, giving freely of their time, energy and resources for

Nominations close:

AUGUST 14, 2015

volunteerism, community service and charity.

•

A respected industry professional who has made a significant impact on those around them.

•

An outstanding contributor to their institution, positively influencing peers and subordinates, and even the industry as a whole.

Visit www.thewarrengroupevents.com/creditunionheroes to

Nominate a Deserving Colleague!

For more information contact The Warren Group today at 617-896-5373 or email events@thewarrengroup.com for more information.

14

BANKER & TRADESMAN

CLASSIFIEDS

AUGUST 3, 2015

THE ONE PLACE TO FIND OPPORTUNITIES

Classified Ads can also be accessed online. Visit bankerandtradesman.com and click on Classifieds.

RESIDENTIAL REAL ESTATE

COMMERCIAL REAL ESTATE

AUCTION

EDUCATION

PROFESSIONAL SERVICES

HELP WANTED

To Place an Ad in Classifieds, Please Contact Wayne Gregory at 617-896-5306.

V I S I T C L A S S I F I E D S. B A N K E R A N D T R A D E S M A N. C O M

LAND FOR SALE LAND FOR SALE West Bridgewater LAND FOR SALE Woodrow Estates West Bridgewater FOR SALE West Bridgewater 5LAND residential lotsEstates available on Woodrow FOR SALE Woodrow West Bridgewater finished road 5LAND residential lotsEstates available on 5LAND residential lotsEstates available on Woodrow FOR SALE (4 new houses, occupied) West Bridgewater finished road FOR SALE finished road 5LAND residential lotsEstates available Woodrow (4 new houses, occupied)on West Bridgewater

Ave (4Sunset new houses, occupied)on West Bridgewater finished road 5 residential lotsExtension available Woodrow Estates 3 residential lotsExtension available on Ave Woodrow Estates (4Sunset new houses, occupied)on finished road 5 residential lots available Sunset Ave finished road 3 residential 5 lotsExtension available (4 newfinished houses, occupied)on road 3 residential lotsExtension available on Sunset Ave road (4 newfinished houses, occupied) road 3 residential lotsExtension available 401finished Pleasant Street on Ave (4Sunset new houses, occupied) finished road Zoned industrial, 5.41 upland, 3 residential lotsExtension available on 401 Pleasant Street Sunset Ave 401 Pleasant Street Sunset Ave Extension abuts Route 24upland, finished road Zoned industrial, 5.41 3 residential lots available on Zoned industrial, 5.41 upland, 3 residential lots available on 401 Pleasant Street abuts Route 24 finished road Middleborough abuts Route 24upland, finished road Zoned401 industrial, 5.41 Pleasant Street Christina Estates Middleborough abuts Route 24upland, Zoned401 industrial, 5.41 Pleasant Street Middleborough 12 lot 401 subdivision, all permits in Christina Estates Pleasant Street abuts Route 24 Zoned Christina industrial, 5.41 upland, Estates Middleborough hand, no road 12 lot subdivision, all permits Zoned industrial, 5.41 upland,in abuts Route 24 12 lot subdivision, all24 permits in Christina Middleborough hand,Route noEstates road abuts Oak Martha’s Vineyardin hand, noEstates road 12 lotBluffs, subdivision, all permits Christina Middleborough Ocean Front House built in 2012 Oak Martha’s Vineyard Middleborough hand, noEstates road 12 lotBluffs, subdivision, all permits in Christina Oak Bluffs, Martha’s Vineyard bedrooms, 3built baths, Ocean3 Front House in 2012 Christina hand, noEstates road 12 lot subdivision, all permits in Ocean Front House3all built in 2012 Oak Martha’s Vineyard indoor & outdoor fireplaces bedrooms, baths, 12 lot3Bluffs, subdivision, permits in hand, no road 3Bluffs, bedrooms, 3built baths, Ocean Front House in 2012 Oak Martha’s Vineyard indoor & outdoor fireplaces hand, no road indoor & outdoor fireplaces 3 bedrooms, baths, Call 508-588-2222 xVineyard 205 Jim Ocean Front House3built in 2012 Oak Bluffs, Martha’s Oak Bluffs, Martha’s indoor & outdoor fireplaces Call 508-588-2222 xVineyard 205 Jim 3 bedrooms, baths, Ocean Front House3built in 2012 Call 508-588-2222 x 205 Jim Ocean House3built in 2012 indoor & outdoor fireplaces 3 Front bedrooms, baths, 3 bedrooms, baths, Call 508-588-2222 x 205 Jim indoor & outdoor3 fireplaces indoor & outdoor fireplaces Call 508-588-2222 x 205 Jim

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IT’S AN OPPORTUNE TIME TO

SELL

OR

INVEST

IN BOSTON REAL ESTATE

Back Bay Beacon Hill South End Cambridge

After 1161 days on market Shelagh Brennan, Executive Vice President of Cabot & Company Real Estate, has sold 56 Beacon Street, a single family in Beacon Hill for $11,500,000 on June 30, 2015.

Ms. Brennan also sold 288 Commonwealth Avenue, a 5 unit apartment building in Back Bay for $6,518,000 on July 15, 2015.

Boston’s Top 20 Realter 2015 RANked BoStoN’S #1 ReAl eStAte AgeNt 2014 617-840-6168 cell 617-896-5002 office shelaghpbrennan@gmail.com

213 Newbury Street, Boston, MA 02116 www.cabotandcompany.com

HELP WANTED

15

BANKER & TRADESMAN

AUGUST 3, 2015

HELP WANTED

COMMERCIAL REAL ESTATE

COMMERCIAL REAL ESTATE

AUCTION

AUCTIONS

BANKING OPPORTUNITIES COMMERCIAL LENDER TO $135,000 PLUS BONUS

A community banking team in the immediate Boston area is seeking to hire an experienced commercial lending professional. The ideal candidate will possess a college degree, along with a minimum of five years of directly related commercial lending experience, preferably within the realm of real estate. The candidate will need to possess a wellrounded skill set that will include business development, portfolio management and credit. The bank has a definite commitment within its marketplace, and is eager to get its deposit base out to work.

COMMERCIAL LOAN CREDIT OFFICER TO $80,000 PLUS BONUS

A growing local bank is looking to hire a commercial loan credit officer. The candidate will need to possess a college degree, along with a minimum of three years of experience within a commercial loan environment. The position will offer exposure to both C&I and real estate deals.

The role will offer a long term flexible career path within the commercial lending arena.

Need to identify prospects in Plymouth?

Is that comp in Chicopee a distressed property?

BRANCH SALES MANAGER TO $90,000 PLUS BONUS

A progressive banking group has an immediate need for a top branch manager.

The bank is looking to grow its impact in the local marketplace, and offers a complete array of products and services to sell. The right candidate will be someone who is looking to take their game to the next level, along with gaining exposure to bank senior management, and the local marketplace.

SINCE 1948 CONTACT TIM KEEFE BOSTON 617-951-4000 fax 617-951-0904 email: Tim.Keefe@roberthalf.com | 125 High Street, 20th Floor Boston, MA 02110 | www.roberthalf.com

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SPONSORSHIP OPPORTUNITIESAND EXHIBITOR AVAILABLE Visit www.firmfuturecon ference.com Today!

Establish ed 1872

WEEK OF MONDAY

Visit classifieds.bankerandtradesman.com to get started.

the

financia l

services

and

real

, AUGUS T

estate

27, 2012

www.ban kerandtr

weekly

A Publication of The Warren Group

SUMMER JOBS PROGRAM

Cranes Have Job-Seekers Flock ing To Boston

Hiring Strong At a Number

A

BY JIM CRONIN BANKER & TRADESMAN STAFF WRITER

sk certain developers, or government officials contractors what their favorite bird is, and they’ll gladly tell you – it’s the crane, of course.

The construction crane.

And right now, those cranes have returned to nest across the Boston area, and

COMMERCIAL

Of Local Contracting,

Construction Firms.

they’re bringing flocks of jobs with them.

In Boston’s Seaport district, Vertex Pharmaceuticals and John Drew are creating new office and residential projects, respectively. Across the Cambridge, Alexandria Charles River in new 11-acre developmen is working on a t project that will house Biogen Idec’s headquarters, stores, restaurants and a public park. And in the

END-AROUND

But Is It Sustainable?

suburbs, Duffy Properties ing the first speculative is already buildproject in years along Route 128 in Burlington.

In 2012, the value of all building permits issued in the city of Boston has reached $3.3 billion, according to information from Suffolk Construction. For all of 2007, at the peak before the crash, the Continued on Page 11

COMMERCIAL REAL ESTATE

REAL ESTATE RESIDENTIAL

REAL ESTATE COMMERCIAL

AUCTION

AUCTION

EDUCATION

EDUCATION

PROFESSIONAL SERVICES SERVICES PROFESSIONAL

HELP WANTED WANTED HELP

SCOTT VAN VOORHIS

| BANKER & TRADESMAN

T

COLUMNIST

here’s really no other way to put it: Mohegan Sun blew it with its fumbling pursuit of the prized casino license for Western sachusetts, and Masnow looks just about done as a serious contender.

Mohegan took an early and seemingly ing lead in the imposcasino sweepstake s, rolling out plans for a mega casino near the Connecticut border in Palmer four years ago.

renovate large

But Mohegan hesitated at key moments it should have poured when it on, with the decision put off paying a to $400,000 application Massachusetts fee to the Gaming Commissio n looking like the last act.

All roads now lead to petition for the western Springfield in the comlicense, with MGM ing like the new lookfront-runner amid a pack of Continued on Page 13

RATE OF RETURN

Mass. Banks Largely Exem pt From

How Local Condition

s Prevent Mass. Lenders

C

BY MATT BROWN BANKER & TRADESMAN STAFF WRITER

ould mortgage rates go lower? Could they be lower if not for bankers eager to put some extra cash on the bottom line?

Those questions have been around national news stories in lately, but bankers here say conditions aren’t quite right make that trend to a reality in Massachu-

To Place An Ad In This Section Contact The Advertising Department At (617) 896-5306

Of Missteps For Archrival MGM.

Once considered a dark horse candidate for the Western Mass. portions of downtown casino license, MGM’s Springfield is quickly gaining traction. proposal to redevelop and

BY SCOTT VAN VOORHIS

MLS Data As A ‘Broker,’ Popular Site Re-Ignite s IDX, Syndication Debate

A

Rate Spread Games

From Cashing In On

Favorable Mortgage

setts.

Quoting industry analysts, the New York Times reported earlier this month that banks are taking advantage of a widening spread between mortgage rates and bond rates. The difference between mortgage rates and bond rates allows banks to sell mortgages to investors for a profit.

Analysts told the Times the spread has been historically high and mortgage rates,

, Bond Spreads

even recently, should have ticked down along with bond rates.

But they haven’t, and banks nationwide say they need to pocket order to cover present the difference in and those they expect compliance costs to pay in the coming months and years.

Conditions here in Massachusetts seem to both encourage and prevent this kind Continued on Page 15

Contributed Rendering

RESIDENTIAL REAL ESTATE

Realestate.com Re-launch Ruffles Realtors Feathers Using

INTERESTS

SU N SETTING ON MOHE Mohegan Sun Was Once GAN Top Mass. Casino Battle. But Dog In The Western A Series

Has Opened The Door Wide

adesman .com

0 Years Celebrmataings 1s4a c h u s e t t s

for

BY COLLEEN M. SULLIVAN BANKER & TRADESMAN STAFF WRITER

new front has opened up in the portal wars – and some Massachusetts listings are caught in the crossfire.

The controversy has to do with the well-known web domain RealEstate. com.

Formerly owned by internet lender LendingTree.com, the domain (and 400 others) was purchased by real estate tech firm Market Leader last fall in an $8.25 million deal.

KATHY CONDON Market Leader, an vider of lead generationestablished proand marketing technology for brokers re-launched RealEstate. and agents, has com as a listings portal, aiming to compete with sites like Zillow, Trulia and Realtor.com.

But it’s doing so with a twist, setting up relationships with a network of local brokers and charging them “referral fees” for a chunk of the commission on a closed deal, instead of simply soliciting agents to advertise on the site. The group has joined 150 multiple listing services (MLS) across the country – including Shrewsbury-based MLS-PIN, the largest MLS in Massachuse tts. And that’s ruffling brokers’ feathers.

RealEstate.com will “serve up any zip code paying agent as the contact, whether [or not] they are even in the listing’s MLS,” complained Mark Holt, an agent at Braemore Realty in Boston.

Continued on Page 7

CONTENTS

The Teller ����������������������� �������������������������������������������2 Points ����������������������� ���������������������������������������������� ��4

By The Numbers ����������������������� ��������������������������������6

Residential Real Estate

��������������������������������������������7 Gossip Report ����������������������� ������������������������������������7 In Person ����������������������� �����������������������������������������10 Commercial & Industrial ����������������������������������������11 Hot Property����������������������� �������������������������������������11 Banking & Lending����������������������� ��������������������������14 Classified Sections ����������������������� ������������������������� C1 Records Section����������������������� ������������������������������ D1

SUPPLE MENT

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